• I use Barchart’s screening functions to find stocks with high technical “buy” signals and strong momentum, but this method struggles in the current market.
• Despite declines in the S&P 500 Index ($SPX) and Nasdaq-100 Index ($IUXX), precious metals like gold and silver are performing well. 
• This makes the Aberdeen Standard Physical Precious Metals Basket Shares ETF (GLTR) an attractive option.
• GLTR shows strong technical indicators, is trading above key moving averages, and has posted significant gains over the past year.

I usually find the Chart of the Day by using Barchart’s powerful screening functions. I sort for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipchart feature to review the charts for consistent price appreciation.  

Unfortunately, that’s not working very well for me in this unsettled market.

What I Noticed:

While the S&P 500 Index ($SPX) closed down again by 3.46% and the Nasdaq-100 Index ($SPX) closed down by 4.19%, I noticed precious metals like gold and silver seem to be doing fine.

When I can’t decide which precious metal to buy I like to look at the Aberdeen Standard Physical Precious Metals Basket Shares ETF (GLTR) issued by Aberdeen Standard Investments. The investment objective of the trust is for the shares to reflect the performance of the price of a basket of gold (GCM25), silver (SIK25), platinum (PLN25) and palladium (PAM25) bullion, less the expenses of the trust’s operations. The shares are designed for investors who want a cost effective and convenient way to invest in physically backed precious metals. 

The long-term chart of the weekly price, with the Trend Seeker and 50-week moving average shows a compelling reason to take a look:

GLTR:

Barchart Technical Indicators for GLTR Stock:

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

When a stock is trading above all of its daily moving averages and closes about 2% from its 52-week high, it won’t take much to hit another new high.

• GLTR has a 96% technical “buy” signal.
• The ETF closed at $126.95 on April 10 with a 50-day moving average of $123.
• GLTR has a weighted alpha of +26.06.
• The ETF has gained 24.4% over the past year.
• Trend Seeker “buy” signal today. 
• GLTR is trading above its 20-, 50- and 100-day moving averages.
• The ETF made 11 new highs and is up 5.5% in the last month.
• The 14-day Relative Strength Index is at 57.02%
• The technical support level is at $123.51.

Total Return Is Positive:

• 20.83% for 1 year
• 28.58% for 3 years
• 59.86% for 5 years

Additional Considerations:

• 3,630 investors are interested in GLTR on Seeking Alpha, giving it a “Strong Buy” Quant rating.
• The management fee of only 60 basis points seems reasonable.

The Bottom Line:

Most financial experts advise their clients to have a small percentage of their investments in alternative assets including precious metals. Buying GLTR may be an easy way to do that.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.